Case Details:

Case Code Case Length Period Pub Date Teaching Note Organization Industry Countries : : : : : : : : ITSY043 11 Pages 1996-2004 2004 Available World Bank Banking USA

Abstract:
By the early 2000s, the World Bank was one of the foremost knowledge organizations in the world. It made a commitment to promote knowledge sharing within the organization in 1996, when it realized that the distance from its headquarters to operational regions had become a major obstacle in objective achievement. While the process of transformation into a 'knowledge bank' was not easy, the Bank accomplished it successfully and set up a system that extended around the world. The case describes the World Bank's journey from a lending institution to a knowledge leader. It examines the need for knowledge sharing at the World Bank and the obstacles it overcame in the process. It also describes how the World Bank created a global knowledge community using web-based tools, as well as the role and development of thematic groups. The importance of tailoring the organization's structure and human resource policies to knowledge sharing is also examined. The case concludes with an analysis of the strengths and weaknesses of the knowledge sharing system at the World Bank.

Issues:
To study the knowledge sharing initiative of a large organization with global operations. To understand the challenges faced in implementing a knowledge sharing programme at a global level. To appreciate the need for a knowledge initiative in organizations operating globally. To analyse the role and importance of the human element in the implementation of any organization-wide initiative, in this case, knowledge sharing. To appreciate the importance of top management support in the success or failure of any large scale project in an organization.

Contents:
The Power of Knowledge Background Towards A Knowledge Organization Creating A Global Community Facilitating Knowledge Sharing A Knowledge Future Exhibits Page No. 1 2 3 4 6 7 9

Keywords:
World Bank, Knowledge management, James Wolfensohn, Bretton Woods conference, International Bank for Reconstruction and Development (IBRD), Thematic groups, Global community, IBM, Communities of practice, Knowledge sharing, Organization structure, Organizational culture, International Finance Corporation, The Multilateral Investment Guarantee Agency and The International Centre for Settlement of Investment Disputes The World Bank is changing its vision of itself from that of a financial bank to that of a knowledge bank, with increasing attention given to supporting knowledge institutions in its borrowing member countries." -An official at the World Bank Economic Development Institute in 2001.1 "Given the complexity of the global challenges we face on a daily basis, it is critical that we respond to the needs of our member countries in timely fashion, and with the best, most relevant knowledge available -James Wolfensohn, World Bank President, in 2003.2

The Power of Knowledge

In October 1996, when James Wolfensohn (Wolfensohn), the newly appointed president of the World Bank, announced that the organization would transform itself into a 'knowledge bank', there were mixed reactions. Some were excited about knowledge management and its potential in helping the World Bank achieve its objectives. Others considered it a waste of time and resources and felt the Bank should stick to its original mission of eliminating poverty. However, by the early 2000s, the World Bank had already emerged as one of the foremost knowledge organizations in the world.

The Power of Knowledge Contd...

It was one of the few non-commercial organizations to invest in knowledge management in a major way, and analysts were surprised at its success in this area in a very short time. In early 2000, the World Bank was recognized as one of the five top knowledge management organizations in the US by the American Productivity and Quality Center (APQC)3. In June 2000, the Bank featured in the list of the 10 top Most Admired Knowledge Enterprises (MAKE) in a survey conducted by the KNOW Network4. By harnessing the vast amount of knowledge present across the organization and making it readily available to all employees and clients, the World Bank created a global knowledge community. Knowledge moved seamlessly across the world to make the work involved in poverty elimination and economic development (the Bank's primary objectives) faster and more effective.

Background
The Great Depression of the late 1930s, followed by the devastation caused by the Second World War (1939-1945), left the world unstable. Economic systems had weakened and world leaders realized the need for a major reconstruction initiative.

Even as the war raged, in 1944, leaders from the Allied Nations5 and their associates met at Bretton Woods, a resort in New Hampshire in North-Eastern US, to deliberate upon and develop an action plan to stabilize politico-economic conditions in the world...

Towards A Knowledge Organization

Although the World Bank had financed several major developmental projects around the world since its inception, it was apparent by the mid 1990s, that it was not as successful as it should have been. Analysts said the reason was the geographic isolation of the Bank relative to the areas it sought to serve...

Creating A Global Community

Analysts said the main reason for the World Bank's ultimate success in implementing a knowledge programme, despite the challenges, was the commitment of the top management...

Facilitating Knowledge Sharing

In 1996, the World Bank adopted a matrix organizational structure to promote exchange of information and know-how between regional units. The operations were divided by region as well as sector, and regional heads and sector heads worked together on policies and managed the budget for a programme...

A Knowledge Future
The World Bank was generally applauded for its success in making knowledge sharing an integral part of its operations. In February 1999, Larry Prusak, Director, IBM Institute of Knowledge Management, led an external panel of knowledge management experts to assess the relevance and impact of the Bank's knowledge sharing programme...